The impact of pre-GST buying on festive sales is bigger than you think

  • Sales of electric appliances dropped by 1-2% this year during Onam and Ganesh Chaturthi as compared to last year.
  • The decline in sales is due to advance purchase during the pre-GST sales in June when the retailers were in hurry to liquidate their stock.
  • The industry reported over 80-100% sales growth in June during the GST discounting.
  • Other reasons for the drop in sales is lower advertising, spend less promotion and discounts as compared to last year.
  • The effect of GST is completely settling down and sales are expected to pick up in the season of Diwali.
The companies are going to use advertising, promotions, discounting and other sales offer to attract the customers and even advertising spend is likely to go up. The festive season accounts for 40% of the white goods(large electrical goods used domestically) industry annual sales.
Source: http://bit.ly/2j69dJV

 

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